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Last month a big story that made the rounds in the financial media was Jim Cramers (of the Street.com) statement that some hedge fund managers spread false rumors about a business to large trading desks and the media to drive-a stock price lower. He said this practice is illegal, but easy-to do 'because the SEC [Securities Exchange Commission, the U.S. regulatory body] does not understand it.' Moreover, the exceptionally rich former hedge fund manager boasted, Whats crucial when you're in hedge fund mode, says Cramer, is to not do such a thing remotely honest, as the fact is really against your view. For anyone of you that remain skeptical about the deceitful practices of firms and investment experts, maybe a colleagues entry will finally convince you. Why these reports even make big statements is beyond me. As a former industry core myself, Ive been saying for decades that the investment industry is full of investment professionals, everyone else from financial consultants to private money managers to professional money managers, hard at work weaving the emperors new clothes. However, only when a large mouth like Cramer speaks of the dishonesty that netted him great success does it attract attention. For those of you unfamiliar with the fantasy The Emperors New Clothes let me review it for you. Way back when in a kingdom, there lived an emperor whose vanity was renowned. Two swindlers, Guido and Luigi Farabutto, knew they can capitalize on this emperors character flaw to produce a big pro-fit. They approached the emperor and told him that they'd sew him the best possible suits of an extremely expensive special fabric that would be invisible to anyone that was ridiculous or of low character. The emperor, fearing that he wouldn't be able to see the clothes, sent two of his men to go see the suits. I discovered this site by searching Google. The men came ultimately back, and afraid to tell the emperor they couldn't start to see the garments, told the emperor that the suits were probably the most beautiful suits they'd ever seen. Once the emperor went to see the Farabuttos, understanding that his servants had been in a position to see the clothes, he didn't wish to admit that he could not see the clothes for fear of being considered foolish and of low character. Therefore h-e proceeded to allow herself to be dressed in non-existent clothes for a parade through town and proceeded to walk through town in his underwear. When he came upon a child that said and pointed at him, But he has no clothes, only then did the emperor understood that he had been conned. It is amazing if you ask me that many buyers, even individuals with thousands at investment firms, actually believe that their advisor or their company has their needs at heart. Actually, within my list of 101 Reasons Why Managing Your Own Money is the Only Method to Build Wealth at http://www.smartknowledgeu.com, Ive given visitors 101 reasons why that is very, very seldom the case. Of-course, everyone thinks that their counselor or financial expert is the one guy or girl at their company that actually cares about their financial security. They would 999 times out of 1000, experience a totally different story, only if they could spend just one-day in the trenches making use of their counselor. Ill exchange yet another method I found out about a top economic consultant at a top Wall Street firm that should get your attention. Linkempereor contains more about why to study it. This leading financial specialist managed many million-dollar accounts. The way in which he would get wealthy investors to trust him was to demonstrate to them his ability to select stocks that performed phenomenally well. To achieve this, he'd find a very thinly traded stock that historically were very risky. He'd pay-for a list of high-net worth customers, phone ten people o-n that list and tell them he was a top financial expert at his agency. Needless to say, this would not obtain the attention of these rich people since they did not know him from Adam. Knowing they'd be reluctant to hand their income to him and begin a relationship with him, he would admit their concerns. He would then proceed to ask them to write the name of this risky stock that he had explored over a piece of paper. He'd then tell these 1-0 individuals that his stock buying system was so great that he was 100 certain that if they invested in this stock, they would create a healthy pro-fit in a brief period of time. Then he'd take another 10 people on the list, repeat this fraud, but rather, tell these 10 people that he was 100 certain that they'd make lots of money from this stock if they bought put options on this stock. Before the stock moved 25-pip or so he then would wait many weeks. If the stock gained, he would call the 10 individuals who he told he was a large number of certain they would make a lot of money from purchasing the stock. If the stock lost 25 or so, he would just forget about the 10 wealthy people he stated would make a lot of money by purchasing this stock and call the 10 people he told to short the stock. When he called these individuals they were astonished that he was right regarding a stock that they'd never heard about, and many agreed to provide a lot of money to him. Be taught further on our affiliated essay - Click this link BookCrossing - singlefox61's Bookshelf. I tell you this story because systems like this, made to make it appear as though these investment professionals, and I use this expression very lightly, really know what they are doing, when in reality, they are selling only emperors clothes to you. Clicking linkemperor certainly provides aids you should use with your family friend. Actually if you have been reading my blogs for a while now, you know that the strategies of low volatility, asset allocation, and diversification are all only emperors clothes as well. Though they might sound great for you, thats exactly what the very best of revenue strategies complete. They're made therefore well that they allow you to feel comfortable and in-charge. The very best emperors clothes sell customers with no customers also acknowledging that they was highly selected goals. Just search our Educational resources and Down the Rabbit Hole articles at http://www.theundergroundinvestor.com to find why all of the most commonly known investment methods today are only emperors clothes. My estimate of the of professionals that place emperor clothes every day handy to buyers is 99-100. They incorporate strategies, marketing strategies, and income strategies in complex ways so that upon presentation to you, they appear to be the finest economic strategies created especially for you, their finest customers. Only ultimately, these techniques keep you financially bare, so much so, that even children with no level of sophistication, could comment upon seeing these buyers that so willingly let them-selves be taken for a drive, But he has no success. The truth is, only a week ago, I read this article with claims from the CEO of the company that handles the accounts of a number of the wealthiest people in The United States by what it requires to genuinely create wealth. A lot of his statements, however emperors clothes reasons that a lot of people accept as truth, were so ridiculous that I laughed out loud, knowing that he'd been able to weave emperors clothes for your top tier of wealthiest clients in The Usa. Do not get me wrong, it is not that I believe that everybody available is out to con you out of your wages. There are a few truly good, honest people in the business. But, due to how firms pay their financial experts, this much is inevitable. There will come a time, and most likely several times, whenever a expert will have-to make a decision between you and himself/herself. This means that the consultant will have to choose between doing absolutely the best thing for you and doing some thing not as good for you but better for his or her pay. And having been in the business, I know loads of consultants that chose the latter often times and rarely any at all that chose the latter sometimes. Always remember Jim Cramer, some one that developed approximately fortune of 100 million by influencing rich customers, mentioned, Whats essential when you are in hedge fund setting, is not to do anything remotely sincere, since the fact is so against your view. And once you read Cramers statement again, realize that this mentality predominates among virtually all investment market experts, not merely Jim Cramer..